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Friday, August 27, 2004

Executives' Views On IT Hurts Spending via Forbes

A new study by the white-shoe consultancy Bain & Co. finds that, while 70% of senior executives at large corporations agree that information technology is relevant to growth, 60% say IT is actually inhibiting their growth efforts. Further, the perception is affecting tech spending.The problem, according to Bain, is that many companies are simply not aligned in a way that makes it possible to use IT as a growth driver. Companies fail to coordinate their business and IT goals. Two-thirds of respondents said their existing technologies either didn't deliver as promised or were underexploited. Others said so-called "legacy" technology lacks the flexibility to keep up with current business and tech trends. David Shpilberg, head of Bain's global IT practice, was not surprised by the results. He says the root of the "broken dialogue" between IT and business executives goes back several decades, when companies used technology to report and analyze what had already happened. Technology decisions are business decisions, and need to be made by business people who understand technology and how it can drive growth. But Bain's study found that business executives are not getting enough literacy about technology.The problem is that not many tech companies have that expertise. The major players will have to become business consultants as much as they are technologists. The article concludes by expressing doubt whether the major IT consulting enterprises are ready for this change.

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